$190.96
−$1.11 (−0.58%)
52-week range
Implied volatility (IV) is the size of the moves that option prices assume, stated as a yearly percentage. Think of it as the weather forecast built into the option price. PLTR options expiring Oct 16 carry 41.3% IV at the money. That points to a typical daily move of about ±$4.97 (2.6%).
Each strike has its own IV. Plotted together they make a curve called the smile. When one side sits higher than the other, that tilt is called skew.
Puts 7% below today's price carry 44% IV. At the money it is 41%, and calls 7% above carry 40%. Traders are paying extra for protection against a fall.
Term structure is the at-the-money IV for each expiry date, from the nearest to the furthest. The circled point is the Oct 16 expiry you picked.
Realised volatility is the weather that actually happened: how much the stock really moved, on the same yearly scale. Comparing it with IV shows whether options look expensive or cheap.
Options price in 41% volatility. Over the last 20 trading days, the stock actually swung at a 25% yearly rate (71% over 60 days). Options are pricing more movement than the stock has actually had. Some extra is normal: it's what option sellers get paid for taking the risk.
The curve slopes upward, from 41% for Oct 16 to 57% for Jan 19, 2029. This is the calm, normal shape. More time leaves more room for surprises, so longer-dated options carry more volatility.